Time Warner Cable Buys Insight for $3 Billion
Time Warner Cable and Insight Communications have entered into a definitive merger agreement for Time Warner Cable to acquire Insight for $3 billion in cash. The announcement concludes months of speculation about who might purchase Insight. Rumored suitors included WideOpen West, Mediacom Communications and Cablevision Systems.
Insight is the ninth largest cable operator in the United States with approximately 759,400 customer relationships in the three contiguous states of Kentucky, Indiana and Ohio.
“We…have long thought that Insight’s well-run, technologically advanced systems would fit well with our Midwest operations," said Glenn Britt, chairman and CEO of TWC, in a statement. "With the deal announced today, we are able to acquire those systems at an attractive price that is consistent with both our disciplined approach to M&A and our capital allocation strategy.”
Insight, serving approximately 537,000 high-speed data subscribers, 679,000 video subscribers and 297,000 voice subscribers, has invested in substantial infrastructure improvements. These system improvements include digital conversions and DOCSIS 3.0 deployment.
Insight is currently owned by The Carlyle Group, Crestview Partners, MidOcean Partners, members of Insight management and others. Carlyle and Insight management took the company private in December 2005, and Crestview and MidOcean purchased a significant stake in the company in April 2010.
